Evaluating two different cookie-baking

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Reference no: EM13940163

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $61,000, has a 5-year life, and has an annual OCF (after tax) of –$10,800 per year. The Keebler CookieMunster costs $94,000, has a 7-year life, and has an annual OCF (after tax) of –$8,800 per year. If your discount rate is 13 percent, what is each machine’s EAC?

32. The level of capital per person would increase if

the average saving rate were higher.

the output-to-capital ratio increased.

the depreciation rate increased.

Both A and B.

Reference no: EM13940163

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Evaluating two different cookie-baking : You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $61,000, has a 5-year life, and has an annual OCF (after tax) of –$10,800 per year. The Keebler CookieMunster costs $94,000, has a 7-year life, and has an annual OCF (after..

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